American Woodmark Corporation News
American Woodmark Corporation Announces Third Quarter Results
WINCHESTER, Va.,
Net sales declined 18% as compared with the third quarter of the prior fiscal year to
Net income for the third quarter of fiscal 2008 was a loss of (
Gross profit for the third quarter of fiscal 2008 was 13.3% of sales, as compared with 18.0% in the previous year. Gross profit for the first nine months of fiscal 2008 was 17.4% of sales, down from 20.4% in the prior year. Gross profit was adversely impacted during the third quarter by one-time severance and separation costs associated with headcount reductions across the Company's 15 manufacturing plants, as well as by costs associated with the Company's decision to close its smallest plant. These charges aggregated 1.0% of net sales in the third quarter of fiscal 2008. The remainder of the decline in gross profit margin experienced during the third quarter primarily reflected the unfavorable impact of inefficiencies in labor, overhead and freight costs stemming from lower sales volumes, as well as rising fuel costs. These inefficiencies more than offset favorability related to an improved sales mix that resulted from the prior completion of the Company's low-margin products transition.
Selling, general and administrative costs were 16.9% of net sales in the third quarter of fiscal 2008, up from 15.1% of net sales in the prior year. Selling, general and administrative costs were 16.5% of net sales in the first nine months of fiscal 2008, up from 13.6% in the comparable period of the prior year. The Company reduced its operating expenses 7% as compared with the third quarter of the prior fiscal year, driven primarily by reduced performance-based compensation. This cost reduction was more than offset by the Company's sales decline.
The Company generated operating cash flows of
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors. The Company presently operates fifteen manufacturing facilities and nine service centers across the country.
Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and the Annual Report to Shareholders. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
AMERICAN WOODMARK CORPORATION Unaudited Financial Highlights (in thousands, except share data) =========================================================================== Operating Results ————————- Three Months Ended Nine Months Ended January 31 January 31 ——————————— ——————————— 2008 2007 2008 2007 ————— —————- —————- —————- Net Sales $132,837 $161,224 $459,124 $594,794 Cost of Sales & Distribution 115,125 132,156 379,393 473,752 ————— —————- —————- —————- Gross Profit 17,712 29,068 79,731 121,042 Sales & Marketing Expense 16,547 16,886 55,290 52,716 G&A Expense 5,931 7,444 20,457 28,005 ————— —————- —————- —————- Operating Income (4,766) 4,738 3,984 40,321 Interest & Other (Income) Expense (353) (580) (1,212) (1,450) Income Tax Expense (2,392) 1,539 961 15,391 ————— —————- —————- —————- Net Income (Loss) $(2,021) $3,779 $4,235 $26,380 ========== =========== =========== =========== Earnings Per Share: Weighted Average Shares Outstanding - Dilute 14,390,904 16,044,636 14,644,859 16,099,541 Earnings (Loss) Per Diluted Share $(0.14) $0.24 $0.29 $1.64 Balance Sheet ——————- January 31, April 30, 2008 2007 —————- ————— Cash & Cash Equivalents $55,431 $58,125 Customer Receivables 20,159 38,074 Inventories 48,608 56,349 Other Current Assets 12,020 11,260 —————- ————— Total Current Assets 136,218 163,808 Property, Plant & Equipment 154,979 166,821 Other Assets 19,093 18,066 —————- ————— Total Assets $310,290 $348,695 =========== ========== Current Portion - Long-Term Debt $875 $854 Accounts Payable & Accrued Expenses 51,604 67,206 —————- ————— Total Current Liabilities 52,479 68,060 Long-Term Debt 26,188 26,908 Other Liabilities 20,643 27,630 —————- ————— Total Liabilities 99,310 122,598 Stockholders' Equity 210,980 226,097 —————- ————— Total Liabilities & Stockholders' Equity $310,290 $348,695 =========== ========== AMERICAN WOODMARK CORPORATION Unaudited Financial Highlights (in thousands, except share data) =========================================================================== Condensed Consolidated Statements of Cash Flows ———————————————————————- Nine Months Ended January 31, 2008 2007 ———— ———— Net Cash Provided by Operating Activities $39,383 $63,714 Net Cash Used by Investing Activities (15,472) (17,911) Net Cash Used by Financing Activities (26,605) (24,119) ———— ———— Net Increase in Cash and Cash Equivalents (2,694) 21,684 Cash and Cash Equivalents, Beginning of Period 58,125 47,955 ———— ———— Cash and Cash Equivalents, End of Period $55,431 $69,639 ======== ======== AMWD-F AMWD-E
SOURCE American Woodmark Corporation
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